Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1887-09-03
BlLMMORR and OHIO,
The Renowned Deal Is at
Last Censummated.
aRtlT FRAUDS IN RkVanA.
Washed Away sy Flosds -TArlR Rs.
turn-LAhsEAl usisaist - colo-
raae RallFead ssla-Fhs In
aiaa Troablss- Grand
Army Resoluslons.
BALrImeHR 4 onsa


RKsT MANY nuMo1a.
NKw YoEx. Sept. 2.-The o0nlinnad
ramors from ali sources thal some in
pertain. aevslopmenss we're haneiee
over the railroad and eelaQraRh world
we're explained By facts which we're
made public late this afternoon. After
breaking OF kis negotiations with Ives
4 %. Mr.. Garretf vent 10 Lendun,
J. 4. Morgan. and today q deal Vas an
nounced comparable % She West Shore
settlement With The NeW York Oe1arAl,
aud the FORMING Of the reading syndl-
oale 70 organise that COnpany. Both
lhese deals were carried through oy
Drexel, Morgan d Co. bat Ia Ne latter
case Ward La1teFosch uas moat peomi-
nent As Q mediatoF between the 0owan
and Drexei interests, and 10 the aasee.
ment soy made be also takes . premi-
nent place.
TIE cohsnnmatiou Of lts eo1tract
made today was held Ia abeyanee until
his opinion vas obtained oa ths CUES.
tion Of WHISTLER the sterling loan
made b. the Ballimore a Ohio
Railroad covered The telegraph system
og the company. After stndying tho
question In al iis aspects, be decided
that the telegraph lines wsFa free from
al lines. and on reaching this opinion,
An aareement in the nature Of 9 pre-
liminAry contract vas exeouted to-day.
The parties 70 The contract are the Bal
timoFs 4 Ohio Railway Company and a
syndieaie composed Of J. :. Morgan 4
Co., Barring Bros. a Co, Brown, 6hiplay,
4 Co.. Of London; DEsxel. Morgan 4
Co, Kiddaf, Peabody q o.. and Bs0Wn
Bros, Of this city, and DFexsl 4 o.. Of
The mosI important point In The eou-
tract provides that the manaeomenl Of
the Company shall be placed 10 c0mpe.
tent hands, satisfactory 10 The syndi-
cate. Who will Be satisfactory cannot
be Asoertained, but A. J. Oaasatt. vice
Presideht Of Sue Pennsylvania Railway,
IL generally believed to be booked as
CARROTS successor. Satisfactory con-
tracts are alec 20 be made with the
Pennsylvania and Reading Railroads
on all business north Of Philadelphia,
and with ali other trunk lines entering
New York, By which oil anlaQouism
will be removed and which will insure
the permanent working Of the Baltimere
q Ohio 10 harmony With the other trunk
lines, and IN addition to these contracts
the lines In process Of construction
from philadelphia 30 New York will be
suspended In their construction. Also
the work on Staten Island viii be
stopped.
Ia consideration Of theae contracts
being signed and With the control In
their hands, the ayndlcato agrees 10 70.
lleve the railroad from lts present en-
baFFassment hy providing $1,000 000
With, uhioh 70 take up She hoa1ing
debt. This will be represented by &b,-
OOO. 600 10 Baltimore 4 Ohio consolidal-
ed livss and &5,0o0,000 preferred stock.
The floating debt as Il stands amounts
20 e7,O00,0O0, mostly IL the shape Of
certificates OF Indebtedness. scrip and
notes. Of this amount el.000.000 Is
said 70 have matuFed on the 6ras In
slant.
one Of ths parties 10 Gho syndicate
authorized the following statement as
the outcome Of the contract: The 20
aition Of The Baltimore q Ohio road ~
an Ishmaelite inthe railroad, sleeping
ear, express and telegraph business is
given up. All The outside enterprises
will be sold 70 parties 20 whom they
will Be valuable. The Western Union
win control II u does not buy ths TEL
earaph linas, andthe Pullman Palace
Oar Company will take the sleeping
car business. The express business
has already gone 70 she United States
Express Company. Tue Affairs OF the
railroad oOmpauyvili be entirely reoE-
Ranizsd and plAeedupon 9 sound hnan-
oial basis"
-DssxsI, Morgan 4 %. were In direct
With their house IN Lon
don and Philadelphia, and late 10 the
evening confirmed the statements thai
the contracts given above had tuss been
signed. Outside Of the facts given
above they declined 70 speak. The
CLAUSE Of she contracts aEspending ell
work on the extension from Philadal-
phIa % New York IL believed 10 be the
hey note OF the ayndloaas'a Interest In
ths negotiations and b construed 10
mean thai the Baltimore a Ohio Rail-
way, uhon diyasted of al extrane0us
enterprises, will be operated practically
by TIE Pennsylvania Railroad.
The following has been issued b. the
arm Of Dfexal, Morgan 4 o.; "A pre-
lininaFy contract haa been exeeuted Be-
twesn the Baltimore 4 Ohio Railway
Company, today. and HaFing BroG and
Brown, shiplsy a Co., Of Lsand0n, and
their allied houses on this side. This
contrast provides for the negotiation Of
1900 900 Of HaltimoFs 4 Ohio oonsoll.
dated s., and eS,oo0O00 Of Baltimore a
Ohio preferred stock for the purpose OF
paying OF the entire hoaiinR debt OF the
company and placing i on . sound
6nanoial basis. The oondllions are -
follows: First, The voEinoation Of The
ataiemeats, ETC., as made; second, that
the management Of the eompany shaii
Be placed 10 oompetent hands saiisfae-
tory 10 the syndie8te; third, that aatis-
factory contracts shall Be- made between
the Haltimore a Ohio anG The other
roads for New YoFk business. which
shall Femove ali antaRonism, between
tbem aud insure pofmaneat harmony.
The other trunk linea. ara also 70 avoid
ths construction Of expenaiys parallel
linss n0rth and east of Philadelphia
The houses Interested on this side are
Dfexsl, Morgan 4 Co., DrsIsl d Co..
Brown Bros, and KiddsE, Peabody a
Co..